Fervo's Contracted Revenue Hits $11.9B as Geothermal Costs Drop to $5,500/kW for Google Project
US geothermal firm Fervo Energy reported a surge in contracted revenue to $11.9 billion in Q3, while highlighting significant cost reductions in its upcoming power plant for Google.
US-based enhanced geothermal energy company Fervo Energy disclosed in its third-quarter earnings report released Monday that its contracted revenue has reached $11.9 billion, a significant increase from $7.2 billion in the previous quarter. This jump reflects the surging demand for electricity from hyperscalers building AI data centers and Fervo's progress in securing orders and meeting delivery deadlines.
Fervo is currently constructing a 396-megawatt power plant for Google at Cape Station in Utah, scheduled to be grid-connected by the end of 2028. The project, now named "Cape Google 400," allows Google to draw power or sell it to other customers if not immediately needed. Co-founder and CEO Tim Latimer stated that both parties are proceeding on independent schedules. Earlier this year, Fervo successfully connected its first 100-megawatt plant to the grid.
Beyond order growth, Fervo's unit economics are improving. The company reported that the first phase of Cape Station cost $7,000 per kilowatt of capacity, while the Google project's cost has dropped to $5,500 per kilowatt. This reduction suggests Fervo is effectively lowering costs through deeper wells and standardized modules called GeoBlocks. With subsidies, this cost level is roughly equivalent to a new natural gas plant running on fuel priced at $6 per million BTUs, narrowing the gap with conventional sources.
Despite these advances, Fervo remains in an early stage of development. The company posted an operating loss of $43.7 million for the quarter but holds $1.9 billion in cash and equivalents, providing ample runway. Fervo's long-term target is to reduce costs to $3,000 per kilowatt, which would allow it to significantly undercut natural gas power even at current market prices, potentially cementing its role in the AI infrastructure supply chain.